On Friday, the Federal Deposit Insurance Corporation (FDIC) announced that it had reached an agreement with Fulton Financial (FULT) to acquire most of the assets and deposits of Republic First Bank in Pennsylvania. This comes after the bank was taken over by regulators.
As of January 21, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits. Under this agreement, Fulton Bank will reopen 32 branches in New Jersey, Pennsylvania, and New York as branches of Fulton Bank. The FDIC expects that the deposit insurance cost related to Republic Bank’s failure will be around $667 million.
Following the news, Fulton stock surged 10% to $17.20 on Friday. The stock has a buy point of 17.09 from a consolidation period that began in late 2022. For stock market updates and more information, you can follow Ed Carson on Twitter at @edcarson1971 and @IBD_ECarson.
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